Nippon Densetsu Kogyo CoTSE:1950 -1.47%80 Operating Margin % is 14.58% as of Mar. 2026, which is 80% above its 10-year median of 8.08. GuruFocus rates TSE:1950 with a GF Score™ of 80/100 and a GF Value™ of 円2,729.57 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,764 Construction companies, Nippon Densetsu Kogyo Co ranks better than 71.6% on this metric.
Nippon Densetsu Kogyo Co (TSE:1950) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Nippon Densetsu Kogyo Co Operating Margin % Related Terms
Nippon Densetsu Kogyo Co Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Nippon Densetsu Kogyo Co Operating Margin % Competitor Comparison
For the Infrastructure Operations subindustry, Nippon Densetsu Kogyo Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nippon Densetsu Kogyo Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Nippon Densetsu Kogyo Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Densetsu Kogyo Co's Operating Margin % falls into.
Nippon Densetsu Kogyo Co Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Nippon Densetsu Kogyo Co's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Nippon Densetsu Kogyo Co (TSE:1950) has a Operating Margin % of 14.58% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Densetsu Kogyo Co and its competitors. This is 80% above median its historical median of 8.08. Over the past decade, Nippon Densetsu Kogyo Co's Operating Margin % has ranged from 4.30 to 10.28. According to the industry distribution chart, Nippon Densetsu Kogyo Co ranks #501 out of 1764 companies in the Construction industry, placing it in the top 28.4%.
Is Nippon Densetsu Kogyo Co's Operating Margin % too high?
Nippon Densetsu Kogyo Co's current Operating Margin % of 14.58% is 80% above median its 10-year median of 8.08. Over the past 10 years, this metric has ranged from a low of 4.30 to a high of 10.28. The Construction industry median Operating Margin % is 5.89. Nippon Densetsu Kogyo Co's value of 14.58% is 147.5% above this industry median. Based on the distribution chart, Nippon Densetsu Kogyo Co ranks #501 out of 1764 companies in the Construction industry, which is above the industry midpoint. Overall, Nippon Densetsu Kogyo Co has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Densetsu Kogyo Co's Operating Margin % compare to competitors?
According to the Construction industry distribution chart, Nippon Densetsu Kogyo Co ranks #501 out of 1764 companies for Operating Margin %. This puts Nippon Densetsu Kogyo Co in the upper half of its industry. The industry median Operating Margin % is 5.89. Nippon Densetsu Kogyo Co's value of 14.58% is 147.5% above this benchmark. Historically, Nippon Densetsu Kogyo Co's own Operating Margin % has ranged from 4.30 to 10.28 over the past decade. While the company's 10-year median is 8.08 vs. the industry median of 5.89, Nippon Densetsu Kogyo Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,764 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Densetsu Kogyo Co's current Operating Margin % of 14.58% is 147.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Densetsu Kogyo Co and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Densetsu Kogyo Co's current Operating Margin % is 14.58%, which is 80% above median its own 10-year median of 8.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Densetsu Kogyo Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Densetsu Kogyo Co (TSE:1950) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,729.57, compared to a current price of 円4,360.00 — trading 59.7% above its estimated fair value. The current Operating Margin % is 14.58%, which is 80% above median its 10-year median of 8.08 and 147.5% above the Construction industry median of 5.89. Nippon Densetsu Kogyo Co's overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Nippon Densetsu Kogyo Co (TSE:1950), the current Operating Margin % is 14.58% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nippon Densetsu Kogyo Co (TSE:1950) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Densetsu Kogyo Co stock appears to be overvalued.
The current stock price of 円4,360.00 is trading 59.7% above its estimated GF Value™ of 円2,729.57.
GuruFocus considers Nippon Densetsu Kogyo Co to be Significantly Overvalued.
Key valuation signals for TSE:1950:
Operating Margin %: 14.58% (80% above median its 10-year median of 8.08)
GF Value™: 円2,729.57 vs. price of 円4,360.00 (59.7% above fair value)
Industry Position: 147.5% above the Construction median (#501 of 1764)
No single metric tells the full story. See the TSE:1950 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Densetsu Kogyo Co Ltd is mainly engaged in equipment works. It is involved in railroad electrical works, such as electric train line, power generation and transformation, power transmission line, electric lamp and signal works; general electrical works, such as building electrical facility, air conditioning facility, water supply, and drainage, and sanitary equipment works, as well as information and telecommunication facility works.
80GF Score
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